Hi, I’m Dorota — Let’s Make Mortgages Simple
If you’ve ever felt like getting a mortgage means learning a new language overnight, you’re not alone. When I bought my first home in Chicago years ago, I remember sitting at my kitchen table with a notebook full of terms like “escrow,” “amortization,” and “DTI”—and, honestly, I was just pretending to understand. I know how overwhelming it can feel to step into the world of home financing, especially if you’re a first-time buyer in Houston, Katy, or anywhere in Texas.
Fast forward to today: I’m a mortgage loan officer based in Katy, Texas, helping families across Texas and the USA navigate the home financing process. My clients range from first-time home buyers to seasoned investors, Veterans using VA loans, and homeowners looking to refinance. My mission is simple: to make mortgages clear, approachable, and tailored to your life.
In this guide, I’m going to break down mortgage basics in a way that’s easy to follow, whether you’re just starting your home search or already knee-deep in rate quotes. I’ll share real stories, Texas-specific tips, and the kind of honest advice I wish I’d had when I started my own journey.
What Is a Mortgage? (And Why It’s Not as Scary as It Sounds)
Let’s start at the beginning. A mortgage is simply a loan you take out to buy a home. You agree to repay the loan (plus interest) over a set period of time—usually 15, 20, or 30 years. The home itself acts as collateral, which means if you don’t repay the loan, the lender can take the property. But don’t let that scare you! With the right plan and support, a mortgage is a powerful tool to build wealth, stability, and a place to call your own.
The Four Key Parts of a Mortgage Payment
When you make your monthly mortgage payment, you’re actually paying for several things at once:
- Principal: The amount you borrow to buy your home.
- Interest: What you pay the lender for the privilege of borrowing their money.
- Taxes: Property taxes, which are collected by your lender and paid to your local government (usually through an escrow account).
- Insurance: Homeowners insurance (to protect your home) and, in some cases, mortgage insurance (PMI or MIP) if you put less than 20% down.
Understanding these pieces helps you see where your money goes each month—and how you can make smart choices to keep your payment comfortable.
Important Mortgage Terms You’ll Hear (And What They Really Mean)
The mortgage world is full of acronyms and jargon, but I promise it’s not as complicated as it seems. Here are some of the most common terms you’ll encounter, explained in plain English:
- Pre-Approval vs. Pre-Qualification:
Pre-qualification is a quick estimate based on self-reported info. Pre-approval means your credit, income, and assets have been reviewed by a lender—it’s much stronger and carries more weight with sellers. If you’re serious about buying, always get pre-approved. - DTI (Debt-to-Income Ratio):
This is the percentage of your monthly income that goes toward debt payments (like credit cards, car loans, and your future mortgage). Lower is better—most lenders want to see a DTI below 43%, but some programs allow higher with compensating factors. - Escrow:
An account your lender uses to hold money for property taxes and insurance. You pay into escrow each month as part of your mortgage payment, and the lender pays your bills when they’re due. - PMI/MIP:
Private Mortgage Insurance (PMI) is required on most conventional loans if you put less than 20% down. Mortgage Insurance Premium (MIP) is required on FHA loans. These protect the lender, not you, but they make it possible to buy with a smaller down payment. - Amortization:
This is how your loan balance is paid down over time. Early on, more of your payment goes toward interest; later, more goes toward principal. Understanding amortization helps you see how extra payments can save you money.
Types of Mortgage Loans: Which One Fits Your Life?
There’s no one-size-fits-all mortgage. The best mortgage lenders will help you compare options and find the right fit for your goals, budget, and timeline. Here’s a breakdown of the most common types of mortgage loans in Texas:
Conventional Loans
- Best for buyers with good credit and stable income.
- Down payments as low as 3% for qualified buyers.
- PMI can be removed once you reach 20% equity.
- Flexible terms (15, 20, or 30 years)
Conventional loans are popular for a reason—they offer competitive rates and flexibility. If you have strong credit and some savings, this could be your best bet.
FHA Loans Texas
- Designed for more flexible credit requirements.
- Minimum 3.5% down payment.
- MIP required for the life of the loan (unless you refinance into a conventional loan later).
- Great for first-time buyers or those rebuilding credit.
FHA loans Texas are a lifeline for many first-time buyers Houston and across the state. They open the door to homeownership even if your credit isn’t perfect.
VA Loans Houston TX
- Available to eligible Veterans, active-duty service members, and some surviving spouses.
- No down payment required.
- No monthly mortgage insurance.
- Competitive rates and flexible credit guidelines.
If you’ve served our country, VA loans Houston TX are one of the best benefits available. I’m passionate about helping Veterans and their families use this powerful tool.
USDA Loans
- For eligible rural and suburban properties.
- 0% down payment.
- Income limits apply.
- Great for buyers open to living outside major cities.
USDA loans are a hidden gem for buyers willing to look a little farther from the city. They make homeownership possible with no down payment and affordable terms.
Jumbo Loans
- For loan amounts above conforming limits ($806,500 in most of Texas for 2025).
- Stricter credit and income requirements.
- Often used for luxury or high-value properties.
If you’re shopping in a higher price range, jumbo loans can help you finance your dream home. Just be prepared for a more detailed approval process.
The Mortgage Process — Step by Step
Getting a mortgage doesn’t have to be a mystery. Here’s what you can expect, from start to finish:
- Get Pre-Approved
This is your first big step. We’ll review your credit, income, assets, and debts to determine how much you can borrow. You’ll get a pre-approval letter, which shows sellers you’re a serious buyer and gives you a clear budget.
Why Pre-Approval Matters:
- Sets your price range so you don’t fall in love with homes outside your budget.
- Makes your offer stronger in a competitive market.
- Lets you lock in a rate as soon as you find the right home.
- Shop for Homes
Work with a trusted real estate agent (I can recommend some amazing ones in Houston and Katy). Your agent will help you find homes that fit your needs, schedule showings, and guide you through the search.
Texas Home Financing Tip:
Use a home loan calculator to estimate your payment for each home you consider. Factor in taxes, insurance, and HOA fees to get the full picture.
- Make an Offer
When you find the right home, your agent will help you craft a competitive offer. Include your pre-approval letter to show the seller you’re ready to move forward.
Pro Tip:
In hot markets like Houston and Katy, homes can sell fast. Having your mortgage pre-approval and documents ready can help you move quickly and stand out.
- Loan Processing
Once your offer is accepted, the lender gets to work. We’ll verify your documents, order an appraisal to confirm the home’s value, and prepare your file for underwriting.
- Underwriting
The underwriter reviews your entire file—credit, income, assets, appraisal, and more. They may approve, suspend for more info, or deny the loan. If more info is needed, don’t worry—I’ll help you gather everything quickly.
- Closing
You sign your documents, pay your closing costs, and get the keys to your new home. This is the finish line—and the start of your next chapter!
Texas-Specific Mortgage Insights
Buying a home in Texas comes with its own set of rules and opportunities. Here’s what you need to know:
Property Taxes
Texas has no state income tax, but property taxes can be higher than the national average. Always budget for this in your monthly payment. Rates vary by county, city, and even neighborhood, so ask your lender or agent for estimates before you make an offer.
Homestead Exemption
After you purchase your primary residence, you can apply for a homestead exemption to lower your taxable value. This can save you hundreds each year—just remember to file in January after you close.
Local Programs: TSAHC and TDHCA
The Texas State Affordable Housing Corporation (TSAHC) and Texas Department of Housing and Community Affairs (TDHCA) offer down payment assistance and Mortgage Credit Certificates (MCCs). These programs can help first-time buyers Houston and across Texas get into a home with less money out of pocket and ongoing tax savings.
- Down Payment Assistance: Grants or forgivable loans to help cover your down payment and closing costs.
- MCCs: Provide a federal tax credit for a portion of your mortgage interest, saving you money every year.
Real-Life Example: First-Time Buyer in Katy
Let me share a story from my own clients. Maria, a teacher in Katy, thought she needed 20% down to buy a home. She’d been saving for years but was still short. We used an FHA loan with down payment assistance from TSAHC, and she bought her first home with less than $4,000 out of pocket—while keeping her emergency fund intact. Today, she’s building equity, enjoying her own space, and planning for the future.
Stories like Maria’s are why I love what I do. Every buyer’s journey is unique, but with the right plan and support, homeownership is within reach.
FAQs: Your Mortgage Questions Answered
Q: How much do I need for a down payment?
It depends on the loan type—0% for VA and USDA, 3–3.5% for FHA/conventional. Down payment assistance can help you buy with even less out of pocket.
Q: How long does the mortgage process take?
Usually 30–45 days from accepted offer to closing. Having your documents ready and working with an experienced team can speed things up.
Q: Can I pay off my mortgage early?
Yes! Most mortgage loans Texas have no prepayment penalty. Making extra payments can save you thousands in interest.
Q: What if my credit isn’t perfect?
There are options! FHA loans Texas are more flexible, and I can help you build a plan to improve your score.
Q: How do I know what I can afford?
Start with a mortgage pre-approval and use a home loan calculator. I’ll help you look at your full financial picture, including taxes, insurance, and HOA fees.
Q: Will I have mortgage insurance forever?
FHA’s MIP is for the life of the loan (unless you refinance into a conventional loan later). Conventional PMI can be removed once you reach 20% equity.
Your Next Step: Let’s Make Mortgages Simple, Together
Whether you’re ready to apply today or still gathering information, my goal is to make this process clear and stress-free. Let’s talk about your budget, loan options, and timeline so you can buy with confidence.
- Start your mortgage pre-approval (quick and secure)
- Use the home loan calculator to estimate payments
- Ask me anything—I’m here to help
Let’s make your homeownership dream a reality, together.
